HB1293 (2020) Detail

Relative to the city of Manchester employees' contributory retirement system.


HB 1293 - AS INTRODUCED

 

 

2020 SESSION

20-2114

10/04

 

HOUSE BILL 1293

 

AN ACT relative to the city of Manchester employees' contributory retirement system.

 

SPONSORS: Rep. Long, Hills. 10

 

COMMITTEE: Executive Departments and Administration

 

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ANALYSIS

 

The bill makes administrative changes and clarifications to the employees' contributory retirement system of the city of Manchester, including compliance with the applicable provisions of the Internal Revenue Code and related Treasury regulations, expanding the options available to the system’s board whenever an elected trustee become unwilling or incapable of completing their term of election, and other technical changes.

 

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

20-2114

10/04

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Twenty

 

AN ACT relative to the city of Manchester employees' contributory retirement system.

 

Be it Enacted by the Senate and House of Representatives in General Court convened:

 

1  Manchester Employees' Contributory Retirement System; Internal Revenue Code Qualification.  Amend 1973, 218:3 as amended by 2002, 194:1 to read as follows:

218:3  Internal Revenue Code Qualification.  The retirement system established in this act is intended to create a tax-qualified governmental retirement plan under sections 401(a) and 414(d) of the Code as amended.  The applicable provisions of the retirement system necessary to comply with all qualification requirements of the Code, the applicable Treasury Regulations, and other Internal Revenue Service guidance and pronouncements shall be set forth in this statute and the retirement system administrative rules.  

2  Definition; Earnings.  Amend 1973, 218:4 as amended by 2002, 194:1 to read as follows:

VIII.  "Earnings" means the total salary or wages of a member for the member's employment with the city, including all grants and allowances for maintenance at such figures as may be determined by the retirement board.  For members whose retirement date is after July 1, 1996, and members who on July 1, 1996 and thereafter terminated city employment and elected to defer their benefits until their normal retirement date but had not yet reached their normal retirement date, earnings shall include unused sick time included in the member's salary or wages at the member's date of termination of city employment.  For members whose retirement date is after December 1, 1997, and members who on December 1, 1997 and thereafter terminated city employment and elected to defer their benefits until their normal retirement date but had not yet reached their normal retirement date, earnings shall include unused vacation time included in the member's salary or wages at their date of termination of city employment.  The determination of earnings and final average earnings shall at all times be made in accordance with section 415 of the Code, and the related Treasury Regulations, the applicable provisions of which shall be set forth in the administrative rules.  Beginning January 1, 2009, to the extent required by sections 3401(h) and 414(u)(12) of the Code, any differential wage payments to a member from an employer (while the individual is performing qualified military service as defined in Chapter 43 of Title 38, United States Code) shall be treated as compensation for purposes of applying the limits on annual additions under Code section and for purposes of determining earnings and final average earnings.

3  Board Vacancy.  Amend 1973, 218:5 IV as amended by 2002, 194:1 and 2003, 102:2 to read as follows:

IV.  In the event of a vacancy on the retirement board, such vacancy shall be filled in the same manner as the member to be succeeded was appointed or elected and for the remainder of the unexpired term.  Any person who is vacating a trustee position on the board may, if the trustee's circumstances permit, continue to represent the membership as a trustee [for a period not to exceed 6 months] until the next regularly scheduled trustee election, or, until a successor is appointed or elected, whichever period is shortest.  In the event that an elected trustee is unwilling or incapable of completing the year in which they cease to be a member, the retirement board may appoint an individual, as defined in section 5, paragraph I, to complete the calendar year.

4  Contributions by the City; Actuarial Assumptions.  Amend 1973, 218:8 as amended by 2002, 194:1 to read as follows:

218:8  Contributions by the City.  The city shall appropriate annually to the retirement board the amounts required to fund the benefits set forth in the act as determined by the retirement board on the basis of an actuary's valuation, which shall be based on sound actuarial funding methods, assumptions, and principles.  The actuarial assumptions used by the actuary shall be in conformity with the requirements of the Code and the related Treasury Regulations and shall be set forth in the administrative rules.

5  Retirement Benefits; Payments.  Amend 1973, 218:12 IV as amended by 2002, 194:1 and 2006, 115:1 to read as follows:

IV.  Notwithstanding any provision of this act, the maximum pension payment payable to any member or beneficiary shall be limited to such extent as may be necessary to comply with the requirements of sections 401(a)(16), 401(a)(17) and 415 of the Code.  The retirement benefits payable hereunder shall be made in the form, at such time and otherwise in compliance with the distribution and rollover requirements of sections 402(c), 401(a)(9), and 401(a)(31) of the Code and the related Treasury Regulations the applicable provisions of which shall be set forth in the administrative rules.  Member contributions and benefit upgrade purchases shall be made in conformity with section 415 of the Code and the related Treasury Regulations the applicable provisions of which shall be set forth in the administrative rules.

6  New Paragraph; Benefits Upon Death of a Member.  Amend 1973, 218:16 as amended by 2002, 194:1 by inserting after paragraph III the following new paragraph:

IV.  Death During Military Service.  Effective with respect to deaths occurring on or after January 1, 2007, while a member is performing qualified military service (as defined in Chapter 43 of Title 38, United States Code), death benefits shall be provided to the survivors of a member to the extent required by section 401(a)(37) of the Code.

7  Review of Retirement Board Orders; Time.  Amend 1973, 218:26, I as amended by 2002, 194:1  to read as follows:

I.  Any member aggrieved by a decision of the retirement board denying the benefits provided by this act may request a hearing by filing a written petition no later than 45 days after the date of the decision.  The petition shall include the name and address of the member, the denial of benefits being contested, legal basis on which the denial is being contested, and any documentation or exhibits which support the member's position.  The retirement board shall grant or deny the hearing request  [within 14 days of the member's request] at its next scheduled meeting.  The rules and procedures for all hearings shall be set forth in the administrative rules.

8  Medical Insurance Coverage.  Amend 1973, 218:28, II as amended by 2002, 194:1 to read as follows:

II.  Member contributions toward this subsidy shall be funded by an increase in the member contribution rate established pursuant to section 218:9, I by 1.25 percent.  [Under no circumstances shall a member be entitled to a refund of contributions made to the Section 401(h) subtrust.] Notwithstanding any other provisions of chapter 218 to the contrary, members shall not be entitled to a refund of contributions made to the Section 401(h) subtrust.  The city shall fund the remaining cost of funding the 401(h) subtrust based on methods and assumptions determined by the board.  Any contribution made by the city intended to fund the 401(h) subtrust shall be so designated.  Any transfers of retirement system assets to the 401(h) subtrust shall be limited to excess assets as defined in Internal Revenue Code Section 420(e)(2).  All such transfers must be made in accordance with Internal Revenue Code Section 420 and all applicable Treasury regulations.

9  Effective Date.  This act shall take effect upon its passage.

Links

HB1293 at GenCourtMobile
HB1293 Discussion

Action Dates

Date Body Type
Jan. 15, 2020 House Hearing
Jan. 29, 2020 House Exec Session
House Floor Vote
Feb. 19, 2020 House Floor Vote

Bill Text Revisions

HB1293 Revision: 6891 Date: Dec. 2, 2019, 2:02 p.m.

Docket

Date Status
Jan. 8, 2020 Introduced 01/08/2020 and referred to Executive Departments and Administration
Jan. 15, 2020 Public Hearing: 01/15/2020 10:30 am LOB 306
Jan. 29, 2020 Executive Session: 01/29/2020 01:00 pm LOB 306
Feb. 19, 2020 Committee Report: Ought to Pass for 02/19/2020 (Vote 20-0; CC) HC 7 P. 8
Committee Report: Ought to Pass (Vote 20-0; CC)